Alright guys so I have come to the encyclopedia of IDI VW diesel knowledge for some insight. I recently purchased a 1981 Caddy from a friend who has owned if for about 2 years and it has sit with a blown turbo and shot rings for probably the last 12 months. I had to scavenge the head off the 1.6D (non turbo motor with a turbo bolted on) to replace the one on my wife's daily after a fuel nozzle went and destroyed the head that was on the car. I then came across an engine that another friend sold about 8 months ago due to a bad IP and I picked it up for a steal.
So here is where I am right now. I have a caddy that this is going into. I have a 1.6 non turbo bottom end that needs a rebuild. A 1Y engine with some missing accessories and an end power goal of 140-170 Whp and the accompanying *** ton of torque. The goal was just to build the 1Y up (Head is already at a machine shop), bolt on a holset blower and send a pump of too the man Giles himself with the spec sheet and see what kind of damage could be done.
Issue I am having is finding any good information on the 1Y and anybody that has successfully built one for this kind of power and been able to daily drive it. I have seen AAZ's produce this amount of power and more but very rarely do I find a build thread with a "Its a year later and this is what has happened". I know the 1Y engine was a Canadian non turbo version of the AAZ. The heads are similar but not the same the valves are different (This will be a question in a minute) the bottom ends have a longer rod and shorter piston but both have oil squirters. So while I was digging through the forums and coming up pretty dry I started wondering if maybe I should focus on building a frankenengine instead as they seem to have the capability of this power goal and be dailyable. (Cold starts aren't much of a concern in AZ)
This is not a money is no object build. I am a college student with a half decent job and monthly bills. I am planning on cashing out some stock options and using part of my tax return to fund this entire build. I have a strong mechanical knowledge. I have friends that are certified welders. I have access to most metal working tools. I am a CAD student and work well with solid works. My accomplice on this build works for cummins and has plenty of diesel experience however we are NOT mechanical engineers and I have A LOT to learn. I am comfortable building and designing quite a bit on my own and I am planning to use all of my resources that allow me to pay in beer whenever possible.

Original Plan....
1Y Head, Port and Polish,
1MM Oversize intake valves (7mm stems) - Where is good source to get these that doesn't have a min. order of 50 like Supertech?
Holset HE211W with a custom built manifold that will get ceramic coating.
Stock pistons with a coated face
Bottom end refresh
Block girdle
Baffled oil pan
Giles Pump and Injectors (Can I send him my 1.6 pump and him build it to properly run a 1.9)
Close ratio 5spd with a Tall 5th (donated by a friend)
Front mount (core donated by a friend)
Water Meth kit (Currently on CL for $125)
Custom intake (working a twin plenum design)
2.75 DP and Full Turbo back dropping off just before the rear axle (Will this cause a risk for valve float?)
Main Studs and Head studs (ARP)
Pyrometer and Boost Gauge...
Goal 20ISH Lbs of boost...
Grand total about $2500... I hope

Question for those that are more experienced than I... Will this support and reliably meet my power goal?
OR
Would I be better off going about doing a 1Y head on a 1.6 Block. I know it would be a good idea to source a turbo block for the oil squirters but is it 100% needed. I will need to convert to a mechanical lifters or find a hydro block (which is just more reason to find a good turbo block) basically all the same mods as above.
This is my FIRST realistic build. This will be my daily, my occasional fat track day car and the cross country rig if needed. I have dawned my flame suit incase but I think I have a sound plan so this should be fun.
Thanks All in advance